Head to Head Contrast: Federal Signal (NYSE:FSS) & Swire Pacific (OTCMKTS:SWRAY)

Federal Signal (NYSE:FSS) and Swire Pacific (OTCMKTS:SWRAY) are both multi-sector conglomerates companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Volatility & Risk

Federal Signal has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Swire Pacific has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Profitability

This table compares Federal Signal and Swire Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Signal	11.22%	18.91%	12.44%
Swire Pacific	N/A	N/A	N/A

Institutional and Insider Ownership

92.7% of Federal Signal shares are held by institutional investors. 3.3% of Federal Signal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Federal Signal pays an annual dividend of $0.56 per share and has a dividend yield of 0.5%. Swire Pacific pays an annual dividend of $0.29 per share and has a dividend yield of 3.6%. Federal Signal pays out 15.6% of its earnings in the form of a dividend. Federal Signal has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Federal Signal and Swire Pacific”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Signal	$1.86 billion	3.78	$216.30 million	$3.59	32.27
Swire Pacific	$10.50 billion	2.82	$553.95 million	N/A	N/A

Swire Pacific has higher revenue and earnings than Federal Signal.

Analyst Ratings

This is a summary of current ratings and target prices for Federal Signal and Swire Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Signal	0	4	2	0	2.33
Swire Pacific	1	0	0	0	1.00

Federal Signal presently has a consensus price target of $123.00, suggesting a potential upside of 6.17%. Given Federal Signal’s stronger consensus rating and higher possible upside, analysts plainly believe Federal Signal is more favorable than Swire Pacific.

Summary

Federal Signal beats Swire Pacific on 11 of the 15 factors compared between the two stocks.

About Federal Signal

Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment. The Safety and Security Systems Group segment offers comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. The company was founded in 1901 and is headquartered in Oak Brook, IL.

About Swire Pacific

Swire Pacific Limited engages in property, aviation, beverages, marine, and trading and industrial businesses in Hong Kong, Mainland China, rest of Asia, the United States, and internationally. The company's Property division develops, owns, and operates mixed-use properties. This division's property investment portfolio comprises office and retail premises, serviced apartments, and other luxury residential accommodations; and trading portfolio consists of residential properties. It also owns and manages hotels in Hong Kong and hotels in Mainland China, as well as owns interests in the Mandarin Oriental hotel in the United States. The company's Aviation division provides flight catering and ramp, passenger and cargo services, and aircraft maintenance and modification services. As of December 31, 2022, it had a fleet of 222 aircraft. Its Beverages division owns rights to manufacture, market, and distribute beverages to consumers. The company's Trading & Industrial division markets, retails, and distributes footwear, apparel, and accessories through its retail outlets; sells passenger cars, commercial vehicles, motorcycles, and scooters; operates a chain of bakery stores; packages and sells sugar products under the Taikoo Sugar brand; and offers waste management, business consultancy, and financial services. The company was founded in 1816 and is based in Central, Hong Kong. Swire Pacific Limited operates as a subsidiary of John Swire & Sons (H.K.) Limited